District 1 Community Meeting April 25, 2018
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Agenda • Budget timeline • Public Input • Where we were/are • Property taxes • Budget breakdown – cost drivers 2
Public Input Short survey to provide input into the budget development process Available from March 18th to May 6th 700+ responses from the community since March 18
www.elpasotexas.gov/chimein 3
Where We Were • Overly optimistic revenue projections • Delaying/eliminating police and fire academies • Reduction to street, park, and facility maintenance • Lack of consistent vehicle and equipment replacement • Hiring freeze, elimination of positions, and no compensation increases
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Where We Are (Since 2014) • Fiscal management • Improved forecasting • Improved organizational stability (no mid-year reductions) • 3 consecutive years of surplus (replenished fund balance by $11.4 million) • Improved grants compliance and reporting (no audit findings for last two years) • Public Safety • Regularly scheduled academies (Officers, Firefighters, 911 Communicators) • Police staffing plan to add a net 300 new Officers over ten years • Implementation of the Crisis Intervention Team • Replacement of police and fire vehicles and equipment 5
Where We Are (Since 2014) • Quality of Life • Operating and maintenance costs for bond projects • Playground replacements and new spray parks in each District • ADA improvements and increased median maintenance funding • Increased funding for residential street lighting • More high speed internet sites and Wi-Fi access
• Employees • Pay raises (three consecutive years of increases) • Various incentives and professional development • Healthcare plan redesign and wellness initiatives to minimize healthcare increases • Additional positions to key operational areas (grants, audit, legal, contract compliance, 6 purchasing, Capital Improvement, Bridges, Animal Services)
Property Taxes (Exemptions, Values, and Rates)
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Where do your tax dollars go?
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El Paso Challenges •
Residential category accounts for almost 70% of total tax base
•
Slow growth in overall tax base (residential and commercial) 9
Property Tax Exemptions # Homestead Exemptions ($5,000 each) 150,000 125,000
126,662
127,640
# Over 65/Disabled Exemptions ($40,000 each) 60,000 50,000
100,000
40,000
75,000
30,000
50,000
20,000
25,000
10,000
-
46,323
47,372
FY 2017
FY 2018
FY 2017
FY 2018
* Over 65/Disabled exemption increased by $10,000 in 2015 resulting in decrease of approximately $3.2 million in property tax revenue
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% Change Median Market Value Single Family Residence (2016 – 2017)
• Increased median market values are occurring in far edges of City limits • Established areas of the City are seeing decreases or minimal increases Source: Central Appraisal District 11
Property Tax Rates (2015 – 2017) Taxable Property Values
Property Tax Rate
($ in Billions) $250
1.00
$231.1 0.80
$200
0.803
0.780 0.584
0.60
$138.8
$150
0.805
$111.0
0.558 0.445
$107.9 0.40
$100 $56.5 $50
$33.9
$0
0.20 0.00
Houston
Austin
Dallas
San Antonio
Ft. Worth
El Paso
Ft. Worth
El Paso
Dallas
Houston
San Antonio
Austin
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General Fund Budget Breakdown
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General Fund – Where does the $ go? $398 million
Other $97,775,140 25%
Personal Services $300,338,721 75%
• Largest cost driver is personal services, which includes salaries, benefits, and taxes • 4,042 full-time equivalents (positions) funded through General Fund 14
Millions
General Fund Expenses – $398 million $140 $120
$128.9 $105.8
$100 $80 $60 $40 $20 $0
$37.3
$28.6 $25.5 $12.0
$9.6
$7.8
$6.3
$5.9
$5.3
$4.8
$4.0
$3.3
$2.7
$2.5
$2.1
$1.9
$1.6
$1.3
15
$0.6
Millions
General Fund Revenue – $398 million $200 $180
$174.9
$160 $140 $120 $100
$89.5
$80 $55.7
$60
$32.3
$40 $20
$20.5
$12.6
$9.2
$0 Property Taxes
Sales Taxes
Franchise Charges For Taxes Services
Other Sources (Uses)
Licenses Fines And And Permits Forfeitures
$2.3
$1.2
Rents And Other
Misc.
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• $16.1 million total increase in last year’s budget • $13.0 million, or 81%, of the increase was in the personal services category • Collective bargaining agreements for Police and Fire • Healthcare increases for employees and retirees • Compensation increases for nonuniform employees • New staffing for quality of life projects
Millions
General Fund Budget $450 $375
$382.0
$398.1
FY 2017
FY 2018
$300 $225 $150 $75 $0
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Millions
Where did $16.1M budget increase go last year? $12 $10
$10.2
$8 $6 $3.9
$4
$1.7
$2
$0.3
$0 ($2)
$0.2
$0.1
$0.1 ($0.3)
Public Safety
Quality of Life
Infrastructure
Sound Governance
Healthy Community
Visual Image
Economic Communication Development 18
Millions
Where did $16.1M budget increase come from last year? $18 $16 $14
$14.5
$12 $10 $8 $6 $4
$1.7
$2
$1.5
$0.7
$0
($0.5)
($2) ($4) Property Taxes
Franchise Taxes
Other
Rents And Other
Sales Taxes
($1.7) Fines And Forfeitures 19
Questions?
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